Congressmen Brendan Boyle, Bob Brady, Matt Cartwright and Mike Doyle joined 84 Democrats and 244 Republicans to shut down a key Consumer Financial Protection Bureau regulation that prevents banks and car dealerships issuing higher interests rates to Black, Latino and Asian Americans than their white counterparts.
The Consumer Financial Protection Bureau issued regulatory guidance in 2013 instructing companies on how to cope with this phenomenon. Since the markup practice tends to result in overcharging borrowers of color, the CFPB recommended that banks and dealerships ditch the practice. If they didn’t, however, they needed to ensure that borrowers with similar credit profiles weren’t receiving different interest rates due to their race or national origin.
As noted above, this regulation has already forced Honda and Ally Bank to return $100 million to minority customers. Naturally, the bill to kill this legislation was lobbied by big banks and auto dealers. Pennsylvania’s only minority Congressman, Chaka Fattah, voted against the bill. Read more by clicking link posted above.